On-Highway Vehicle Lighting Market Size, Share and Trends 2025 to 2034

On-Highway Vehicle Lighting Market Size and Forecast 2025 to 2034

The global on-highway vehicle lighting market size accounted for USD 31.35 billion in 2024 and is predicted to increase from USD 32.96 billion in 2025 to approximately USD 51.75 billion by 2034, expanding at a CAGR of 5.14% from 2025 to 2034. The demand for vehicle safety features has increased, driving the global market. Stringent regulations mandating advanced on-highway lighting systems are fueling market expansion.

On-Highway Vehicle Lighting Market Key Takeaways 

• Asia Pacific dominated the on-highway vehicle lighting market with the largest share of 54% in 2024.
• Europe is projected to host the fastest-growing market in the coming years.
• The North American market is expected to grow at a notable CAGR in the foreseeable future.
• By product, the LED segment held a dominant presence in 2024.
• By product, the LASER segment is expected to grow at the fastest CAGR during the forecast period.
• By vehicle type, the passenger car segment led the global market in 2024.
• By vehicle type, the heavy trucks segment is projected to expand rapidly in the market in the coming years.
• By application, the headlight segment contributed the highest market share in 2024.
• By application, the interior lights segment is projected to grow at the fastest CAGR in the future years.

How is Artificial Intelligence (AI) Advantageous for On-Highway Vehicle Lighting?

Artificial Intelligence has become a significant tool in enabling smart and adaptive technologies in the on-highway vehicle lighting market. AI-enabled optimization helps to improve energy efficiency, safety, and driver experiences. AI can optimize lighting performance and help reduce energy consumption, making it an ideal tool for energy-efficient features. An AI-powered lighting system can detect and provide a quick response to changing conditions and enhance visibility. Additionally, AI can improve driver experiences with enhanced lighting features. Increased adoption of electric vehicles is surging AI implementation to advance lighting technology. AI is able to offer sophisticated lighting systems for luxury and premium vehicles.

Asia Pacific On-Highway Vehicle Lighting Market Size and Growth 2025 to 2034

The Asia Pacific on-highway vehicle lighting market size was exhibited at USD 16.93 billion in 2024 and is projected to be worth around USD 28.20 billion by 2034, growing at a CAGR of 5.23% from 2025 to 2034.

Rapid Urbanization to Fuel Asian Innovations and Developments

Asia Pacific dominated the on-highway vehicle lighting market with the largest share in 2024 due to various factors like rapid urbanization, demand for energy-efficient lighting systems, and strict government regulatory implementations. Asia Pacific has witnessed growth in demand for ambient light systems. Continuous climate changes and visibility limits are the major factors contributing to accidents. High vehicle production range and high adoption of electric vehicles are contributing to the development of smart lighting.

Government Support Driving China’s Market

China leads the regional market with a well-established automotive industry. Government support and rapid urbanization fueled market expansion in China. Government support and funding for manufacturing industries enable innovation and advancements in lighting technology. The demand for safety and visibility features in vehicles has increased in the country, leading to the adaptive lighting and automatic high beams areas.

• China will hold the 13th International Forum of Automotive Lighting (IFAL) in June 2025, with the ambition of the IFAL Forum being to establish a premier platform for academic and industrial exchanges in the field of automotive lighting.

European Regulations for Safety Standards Boosting Market

Europe is projected to host the fastest-growing on-highway vehicle lighting market in the coming years, driven by various factors like increased demand for electric vehicles and strong regulations. The European Union has implemented strict regulations and standards of safety and emissions, driving demand for energy-efficient lighting solutions. Additionally, regulations regarding Daytime Running Lights (DRLs) and other safety-related lighting have increased the demand for LED-based solutions and influenced product development. Europe is the hub for major lighting manufacturers, driving innovation and the development of energy efficiency, durability, instant brightness, and high-quality lighting systems.

Strong Automation Industry Contributing to the German Market

Germany leads the regional market due to the existence of leading manufacturing companies and a strong automated industry. Germany is leading in innovation in lighting technology and strict safety standards, which has increased demand for LED, OLED, and adaptive lighting systems.

Stringent Regulations Driving Innovations in the UK’s Lighting Technology

The UK is anticipated to witness significant growth in the forecast period, driven by a high focus on innovations and lighting systems. The UK has a high adoption rate of electric vehicles, driving demand for energy-efficient LED solutions. The UK’s automotive sector is witnessing a shift toward electric vehicles and strict regulations.

• In February 2023, the company responsible for England’s Strategic Road Network (SRN) announced a switch of 70% of its lights to cleaner LED alternatives by 2027 as part of its commitment to Net Zero, National Highways. The innovation demonstrates replacing older lamps with LED lights that use far less energy to produce the same amount of light, starting last month (January) on the A5036 in the Northwest.

North America On-Highway Vehicle Lighting Market Trends

The North American on-highway vehicle lighting market is expected to grow at a notable rate in the foreseeable future. The strong automotive industry, high vehicle sales, and increased adoption of electric vehicles due to government initiatives are contributing to the market growth. Government regulations to promote energy-efficient lighting solutions are improving innovations and developments in the regional lighting sector.

Strong Automotive Industry Leading U.S. Market 

U.S. leads the regional market due to factors like the existence of large manufacturing industries and a strong automotive industry. Manufacturers are prioritizing energy efficiency with LED and OLED lighting features. The growing demand for LED lighting is fueling the market expansion. 

Market Overview

The on-highway vehicle lighting market has witnessed significant growth due to increasing demand for energy-efficient solutions and government regulations. The increased adoption of passenger and commercial vehicles is driving demand for safety and visibility features. Rapid urbanization has contributed to this adoption. Governments worldwide are implementing stringent safety regulations and standards, pushing for innovations and developments of advanced lighting technologies.

Advancements in LED technology are driving the on-highway vehicle lighting market expansion, driven by the government's push for energy efficiency and highly visible features. Manufacturers are focusing on innovation and advancements in LED lighting systems to advance safety features as well as reduce carbon footprints.

• By March 2027, the UK’s National Highways will invest £132m over a five-year period to retrofit most of the remaining lights, taking the number of environmentally friendly LED lights across the network to at least 70%.

On-Highway Vehicle Lighting Market Growth Factors 

• Vehicle production and sales: Vehicle production has increased across the world due to rising demand for passenger cars and commercial vehicles, contributing to advancements in heavy vehicle lighting.
• Need for safety features: As the adoption of vehicles has increased, the need for vehicle safety has seen rapid growth.
• Strict regulations: Strong government regulations have mandated safety features and regulations for the highway. Lighting system, contributing to market growth.
• Adoption of electric vehicles: Rapid adoption of electric vehicles enables novel innovations and technologies.
• Technological advancements: The development of innovative technologies like LED, laser, and OLED lighting is improving visibility, safety, and energy efficiency.
• Government initiatives: Government investment and funding are encouraging construction activities and the adoption of innovative technologies, contributing to the implementation of advanced lighting systems.

Market Scope

Market Dynamics

Drivers

Vehicle Safety Regulations

The on-highway vehicle lighting market has witnessed transformative growth due to the government's implementation of stringent vehicle safety regulations and standards. Government initiatives have mandatory manufacturers focus on safety, energy efficiency, and visibility standards. The strong on-highway vehicle lighting safety standards push manufacturing companies to innovations and advancements in lighting technologies. 

The government is promoting the implementation of energy-efficient lighting solutions like LEDs and OLEDs. Increased adoption of electric vehicles has driven regulatory implementation for autonomous and connected vehicle lighting systems. The trend of vehicle-to-vehicle communication is expected to boost advancements in vehicle safety.

• In September 2024, China's government announced the implementation of new vehicle lighting regulations based on UN regulations and focused on road illumination, light signaling, and retro-reflective devices. The regulation will be mandatory for all newly registered vehicles on July 1, 2028.

Restraint 

High LED lighting cost

LED lights are highly energy-efficient and durable. They require cooling equipment to control their heat generation, increasing costs. The high cost of LED lights further increased the production cost of vehicles and limited the adoption rate. This high cost hampers LED utilization in premium and luxurious vehicles. The costs also include the repair costs. Advancements in alternative technologies like HID lights are slowing the utilization of LED lights. 

Opportunity 

Adoption of electric vehicles

The increased demand for electric vehicles is driving demand for the on-highway vehicle lighting market. Electric vehicles require sophisticated illumination to support adaptive lighting. These vehicles often focus on advanced safety and visibility features. Manufacturers have prioritized advancing visibility features to reduce accidents. Electric vehicles, mainly implemented with LED technology, provide efficiency, flexibility, and cost-effectiveness. 

The unique lighting requirements in electric vehicles provide significant space for innovations and advancements in lighting technology. The government is promoting the use of electric vehicles to contribute to net-zero emissions, driving further consumer demands. Government initiatives are creating opportunities for manufacturers in the market.

Product Insights 

The LED segment held a dominant presence in the on-highway vehicle lighting market in 2024, driven by increased demand for LED lighting in vehicles. LEDs are energy-efficient, durable, and flexible compared to traditional lighting sources. Energy efficiency reduces the cost burden and carbon emissions. On the other hand, the long life span of a leader further contributes to the need for maintenance and replacement costs. The demand for superior writing quality is the next LED segment, ideal for various on-highway vehicle lighting applications.

• In March 2025, Valeo, a global leader in automotive lighting systems, won the “Infrastructure and Vehicle Improvement” award, the 2025 Innovation award category from Sécurité Routière, the French national road safety authority, for its innovative EvenLED technology used in the design of vehicle front and rear signaling systems.

The LASER segment is expected to grow at the fastest rate during the forecast period of 2025 to 2034. The segment growth is attributed to the rising demand for luxurious vehicles and advanced scene-smart lighting, enabling adaptive lighting and automatic high-beam features. LASER products provide high energy efficiency, durability, and superior lighting quality. Rising safety concerns are driving innovations and developments of advanced LASER-based lighting systems.

Vehicle Type 

The passenger car segment led the global on-highway vehicle lighting market in 2024. The increased demand for passenger cars is driving demand for lighting systems. Consumer preference for smart lighting, such as ambient lighting, LED headlights, adaptive lighting, and mood lighting for passenger cars has grown rapidly. 

On the other hand, the heavy trucks segment is projected to expand rapidly in the market in the coming years, driven by rising demand for logistics and transportation. The government is improving safety regulations and standards to ensure the safety and performance features of lighting. Manufacturers are focusing on safety and visibility with features like adaptive lighting and automatic high beams in heavy trucks. Additionally, the increased adoption of electric commercial vehicles like electric trucks and buses is fueling innovation and advancements in lighting systems.  

Application Insights 

The headlight segment dominated the global on-highway vehicle lighting market in 2024, driven by increased vehicle production and safety and visibility requirements. Headlights provide safety and visible features, especially at night and in low-light conditions. Strict regulatory requirements for safety standards contribute to advancements and implementations of headlights. Technological advancements such as LED products and laser headlights are enabling high performance, efficiency, and flexibility of lighting systems. The increased adoption of LED headlights is a trending segment expansion.

The interior lights segment is projected to grow at the fastest rate in the future years. The demand for ambient lighting, customizable color schemes, and premium lighting has increased, making manufacturers focus on areas of sophisticated and personalized interior lighting experiences. Interior lights are comfortable and convenient for drivers, especially at night. The increased electric vehicle adoption and advancements in smart lighting are expected to drive significant advancements in interior lights. Additionally, the trend of aesthetic designs and the appearance-boosting segment is growing.

On-Highway Vehicle Lighting Market Companies

• Marelli Automotive Lighting
• KOITO MANUFACTURING CO., LTD.
• Koninklijke Philips N.V.
• Valeo
• Spyder Auto
• Maxxima
• Zizala Lichtsysteme GmbH (LG Electronics)
• TYC Genera
• Optronics International LLC
• Stanley Electric

Recent Developments 

• In June 2024, Melexis, an influential player in automotive LED drivers for ambient lighting, extended its LIN RGB family with the MLX81123. The lighting delivers cost-effective performance and reliability in a small package.
• In June 2024, LITEON Technology participated in the 2024 Shanghai International Auto Lamp Exhibition (2024 ALE). With the theme “ILLUMINATION CONNECTS THE FUTURE,” the focus is on core module solutions for intelligent vehicle lights.

Segment Covered in the Report

By Product 

• Halogen
• HID
• LED
• Incandescent
• LASER

By Application 

• Headlight
• Exterior Lights
• Internal Lights

By Vehicle Type 

• Motorcycle
• Passenger Cars
• Buses
• Light Trucks (Class 1-3)
• Medium Trucks (Class 4-6)
• Heavy Trucks (Class 7 and 8)

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa